Posts Tagged ‘BRICS Bank’

We cannot blame China and India, or Russia if they wish to protect themselves from western systemic risk by shifting their trade settlements away from the dollar. It is becoming clear to Asian leaders at least that the dollar’s reserve status is an anachronism of the past & cannot last, a simple deduction that raises important questions not addressed for over a century.

China is not so much devaluing the yuan, but causing a dollar revaluation upwards relative to international trade prices. She is aware that the US economy is in difficulties and that the Fed is worried about the prospect of price deflation, so lower import prices are the last thing the Fed needs. Now China’s currency move begins to make sense.

On Tuesday, ahead of this year’s summit in Ulfa, the BRICS countries officially launched the new bank along with the reserve currency pool. Brazil, Russia, India, China and South Africa (BRICS) will also look to begin settling more trade in national currencies. The Chinese yuan as the leading currency can be used in settlements among BRICS member states.

In retaliation to Western sanctions, Putin yesterday unveiled a total food import ban from all sanctioning nations & just as the BRICS created their own ‘IMF-lite’ away from Washington’s prying eyes, Russia plans to substitute banned goods with not just domestic supplies but imports from Latin America, China & several other nations.

The House of BRICS just keeps building, gold brick by energy brick, in stark contrast to the House Of Paper by the US. It is now, not a question of an upside breakout for physical gold and silver. Rather, it is more a question of the ongoing breakdown and collapse of the Western banking system and fiat “dollar.”

The overall down-trend of the US dollar is clear. But one must remember that counter-trends are typically far more powerful than many expect – and many counter-trends last far longer than expected as well. Let’s discuss the factors that could conceivably bring about the mother of all counter-rallies in the USD.

The anti-dollar alliance – BRICS has successfully created the BRICS Bank with India as the first President, a so-called mini-IMF as part of a system of measures that would help prevent the harassment of countries that do not agree with some foreign policy decisions made by the US & their allies.Simply put, it’s game over for the dollar.